$100 Oil Should Be XOP's Best Year Ever. Why Isn't It?

WTI crude oil surged above $114 per barrel in early April after the U.S. imposed a naval blockade on Iran following the collapse of peace talks in Islamabad. The move reflects a sharp geopolitical supply-risk premium in energy markets and could support higher crude and refined-product prices. The shock is likely to have broad market implications given Iran's role in global oil flows.

Analysis

WTI crude oil surged above $114 per barrel in early April after the U.S. imposed a naval blockade on Iran following the collapse of peace talks in Islamabad. The move reflects a sharp geopolitical supply-risk premium in energy markets and could support higher crude and refined-product prices. The shock is likely to have broad market implications given Iran's role in global oil flows.